Fiscal Year Ended January 31, 2024
Financial Results Briefing

Computer Engineering & Consulting Ltd. (9692)© Computer Engineering & Consulting Ltd. All rights reserved.

Contents

1.

Operating results for the fiscal
year ended January 31, 2024

2. VISION 2030 (long-term vision)
3.

Full-year forecasts for the fiscal
year ending January 31, 2025

4. Appendix© Computer Engineering & Consulting Ltd. All rights reserved.

1

Contents

1.

Operating results for the fiscal
year ended January 31, 2024

2. VISION 2030 (long-term vision)
3.

Full-year forecasts for the fiscal
year ending January 31, 2025

4. Appendix© Computer Engineering & Consulting Ltd. All rights reserved.

2

Highlights of operating results for the fiscal year ended January 31,
2024◼ Sales grew thanks to a positive trend in systems development as a whole, led by digital transformation (DX)demand among major customers.
◼ Operating income and ordinary income reached record highs. We applied tax deductions to net income based on
the tax system to encourage wage increases.
FY endedJanuary 2023

FY endedJanuary 2024

YoY
Amount%Net sales

48,20653,124+4,917+10.2%

Gross profit

11,31014,096+2,785+24.6%

Gross profit margin

23.5%

26.5%

–

+3.0ptOperating income

4,374

6,361

+1,987+45.4%

Operating profit margin

9.1%

12.0%

–

+2.9ptOrdinary income

4,413

6,409

+1,996+45.2%

Ordinary profit margin

9.2%

12.1%

–

+2.9pt

Net income attributable toowners of parent

5,179

4,541

(637)*(12.3)%

Margin on net income
attributable to owners of parent

10.7%

8.5%

–

(2.2)pt© Computer Engineering & Consulting Ltd. All rights reserved.

* Gain on sale of investment securities recorded as extraordinary income in Q2 of FY ended January 2023

3

Quarterly performance trend◼ Net sales grew in both core and focus businesses.
◼ Operating income grew thanks to higher sales, expanding sales of our security products, and a positive reboundfrom the recording of provisions for losses on orders received.
◼ We maintained a high operating profit margin through business efficiency improvements and expanding sales ofour security products.
Net sales ( 1 0 0 m i l lion ye n)Operating income / operating profit
margin ( 1 0 0 m i l lion ye n)

Up

10.2%

Q4

Q3

Q2

Q1

137

128

126

126
FY20/1

11.4%

531
480
120
114
119

126
FY21/1© Computer Engineering & Consulting Ltd. All rights reserved.

452
116

10.5%

482

59

138
129

110

118

109

116

Q4

14

Q3

15

Q2

118

132

FY22/1

FY23/1

FY24/1

12

14
42
11
8

11

8

16

15

13

FY20/1

FY21/1

FY22/1

Q1

9.1%

50

10
132

63
9.3%

13

128

114

45.4%

+

12.0%

+

518

Up

（％）

43
10

13

14

16

10
18
9
FY23/1

FY24/1
4

Main factors affecting operating income(Million yen)(287)
+2,032Service Integration+242
FY2023/1

OperatingincomeDigital Industry◉ Higher income driven
by sales growth◉ Higher income driven bysales growth◉ Increase from our security
products◉ Growth due to rebound fromthe recording of provisions
for losses on orders
received

4,374
Total increase© Computer Engineering & Consulting Ltd. All rights reserved.

Companywide
costs◉ Personnel costs◉Cost of hiring
enhancements◉ Promotional costs◉ Cost of improving theworking environment

FY2024/1

Operatingincome6,361+1,987
5

Year-on-year change by business segment◼ Sales and profit grew in the Digital Industry segment, powered by growth in the connected and mobility businesses.
◼ In the Service Integration segment, growth in the ICT infrastructure development and systems development
businesses, combined with a rebound from the recording of provisions for losses on orders received, boosted bothsales and profit.
(Million yen)
FY ended January 2023
Operatingincome /operatingprofit margin

Net sales

Digital Industry

16,834

3,857

Service Integration

31,372

4,573–(4,057)Companywide
costs
Total

© Computer Engineering & Consulting Ltd. All rights reserved.

48,206

22.9%
14.6%

4,374
9.1%

FY ended January 2024
Operatingincome /operatingprofit margin

Net sales

YoY
Operatingincome(%)

Net sales(%)

18,313

4,100+1,479

+242

22.4%

[+8.8%][+6.3%]

34,8106,606+3,438+2,03219.0%[+11.0%][+44.4%]–(4,344)

–

(287)

6,361

+4,917+1,98712.0%[+10.2%][+45.4%]

53,124

6

Digital Industry Business◼ Net sales (100 million yen)

◼ Operating income, margin (100 million yen, %)
60

30%

200
150

22.4%

22.9%

50

19.8%

40

20%

30

100

168

158

46

40

39

10

8

14

41

38

31

90

82

77

20

135

123

116

50

183
28

21

21

19

11

10

0

0
1Q

2Q

3Q

4Q

1Q

3Q

4Q

FY23/1

FY22/1Business category

2Q

1Q

2Q

3Q

0%
1Q

4Q

FY24/1

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

FY23/1

FY22/1

Change in Change innet sales
income

10%

30

2Q

3Q

4Q

FY24/1

PointsConnected Services• While factory DX projects showed an increasing trend, net sales were down YoY due to restrained investment bymajor customers in controls development.
• Income increased thanks to an improved gross profit margin resulting from efficiency improvements in productmaintenance.
• Positive trends in connected cloud development and Big Data analysis for the auto industry• Next generation testing, including auto-testing, demonstrated strong positive trends for cloud services.

Chubu Services• Growth in systems development projects for major customer backbone systems (design, finance)• While customer demand at the end of the year grew last year, income during this period returned to normal levels.

Nishinihon Services• The LogiPull logistics solution grew, as did systems development (medical manufacturing and EOL services).
• Income trended largely unchanged YoY.

Smart Factory+ 10% or more
© Computer Engineering & Consulting Ltd. All rights reserved.

+ 5 to less than 10%+/- less than 5%(5) to more than (10)%(10)% or less7

Service Integration Business◼ Net sales (100 million yen)

◼ Operating income, margin (100 million yen, %)

400

80

19.0%
20%

300

15.5%

60

14.6%
15%

200

313

293

85

77

74

66
20

173

152

146

40

257

229

218

100

348

14

0

24

34

45

2Q

3Q

4Q

1Q

3Q

4Q

FY23/1

FY22/1Business category

2Q

1Q

2Q

3Q

4Q

1Q

FY24/1

2Q

20
3Q

4Q

5%

35
16

0%

2Q

3Q

4Q

1Q

FY23/1

FY22/1

Change in Change innet sales income

1Q

49

45

9

0

1Q

34

10%

2Q

3Q

4Q

FY24/1

PointsService Integration• Positive performance for Microsoft-related services and migration services, backed by DX demand• Steady trends in systems development and maintenance for major customers

Platform Architect• Growth in LCM services associated with system operations after environmental development in the ICT
infrastructure development business• Large-scale sales to government agencies contributed significantly to sales and profit in the security business.

Group companies• Sales and profit grew thanks to growth in near-shore development and system operations sales to major
customers.
+ 10% or more

© Computer Engineering & Consulting Ltd. All rights reserved.

+ 5 to less than 10%+/- less than 5%(5) to more than (10)%(10)% or less8

Progress of the focus businesses◼ Proposal of ICT solutions in line with customer DX demand bore fruit, increasing both sales and profit. Results
exceeded targets.
◼ The operating profit margin also improved significantly, thanks in particular to growth in the security andmigration domains.
Operating income / operating profit
実績
margin ( 1 0 0 m i l lion ye n) 目標

Net sales ( 1 0 0 m i l lion ye n)
Sales target
売上高目標

Actual sales
売上高実績

Up

180

+12.4%

Operating income
営業利益目標
target

営業利益
実績income
Actual operating

Profit margin
利益率目標
targetActual profit margin
利益率実績

Up

30.1%

27.8% + 30%

60

160

140
120

24.0%

22.3%

50

23.7%
23.9%

40

25%

20%

22.2%

100
30

15%

80

126

60

105

106

127

142

143
20

38
30

40
10

23

23

39

10%

30
5%

20
0

0
FY22/1© Computer Engineering & Consulting Ltd. All rights reserved.

FY23/1

FY24/10%
FY22/1

FY23/1

FY24/19

Details of progress on the focus businesses

Digital Industry◼ Progress varies by area, with security and mobility leading overall.
Production andlogistics solutions

Mobility services

Percentage ofsales target
achieved:

95.2％

Service Integration

 Positive performance in cloud development and Big Data analysis for the auto industry
 BEV-related onboard controls development is on the rise, as is in-vehicle software
evaluation.

 Growing DX demand resulted in strong performance on Dynamics 365 as well as
Microsoft 365 and Power Platform.
 Inquiries are gradually picking up following our introduction of services related togenerative AI (Azure OpenAI).

Microsoft-related
services

Migration services

 Production: Progress slowed due to restrained customer investment. We promoted SI
solutions bundling multiple products to meet manufacturing DX demand.
 Logistics: Sales grew against a backdrop of logistics issues. We secured a major salefor berth management.

Percentage ofsales target
achieved:

 Firms increasingly focused on cost and expandability, resulting in growth for projects for
migration from on-premises to the cloud.
 Application migrations to enhance security are also growing.

Security services

 While stock sales decreased, security monitoring services (SOC) for local governments
performed strongly.
 A large sale of our SmartSESAME product to government agencies, recorded in Q2,
boosted profits.

DX cloud platform We plan commercial introduction in February 2025, following reconsideration of market
needs and a differentiation strategy.

102.2％© Computer Engineering & Consulting Ltd. All rights reserved.

10Trends in orders received and outstanding balance of orders
received◼ Orders received and the outstanding balance of orders received reached record highs, backed by strong ICT
investment.
Service Integration
Digital Industry
Outstanding balance of orders received ( m i l l i on yen )Orders received ( m i l l i on yen )
Up

+1.6%

Up

+0.6%

53,22052,377

17,662
16,76015,65746,221

14,366 14,309 3,366

41,149 18,390

40,561 17,153

12,653
12,108

12,164
11,183

13,89026,301

27,233

8,389

8,921

3,533

15,754
3,712

3,209
3,417

3,340
11,79235,206 16,198

17,531
16,445

2,892

3,194

2,817

11,486 3,343 3,150
3,021

23,1407,895
30,02327,907

4,418

23,098

4,167

２Q

３Q

４Q

１Q

FY22/1

27,25911,022 11,159

14,12812,317

13,235 13,819

12,337

8,899 8,366 8,969 8,465

18,311

10,39010,262

8,623

34,830

4,835

17,912

15,245

１Q

35,224 15,226

14,68012,791

13,394

２Q

３Q

FY23/1※

４Q

１Q

2Q

3Q

FY24/1

4Q

１Q

２Q

３Q

FY22/1

４Q

１Q

２Q

３Q

FY23/1※

４Q

１Q

2Q

3Q

4Q

FY24/1* The recording period for orders received for certain long-term projects changed in FY23/1 due to the application of the Accounting Standard for Revenue Recognition. Before, orders received for long-term projects were recorded
year by year; after this change, the remaining periods of the long-term projects were recorded in bulk in FY23/1. Before this change, full-year orders received were up approximately 7.3% in both FY23/1 and FY24/1.

© Computer Engineering & Consulting Ltd. All rights reserved.

11

Year-on-year comparison of sales by industry(Million yen)YoY

FY23/1

Manufacturing

21,33423,018[Share of total][44.3%][43.3%]

Telecommunications/information services

12,696

14,102[26.3%][26.5%]

Finance

4,598

4,872

[Share of total][9.5%][9.3%]

Distribution

3,015

3,129

[Share of total][6.3%][5.9%]

Government agencies

2,047

3,580

[Share of total][4.2%][6.7%]

Other

4,514

4,420

[Share of total][9.4%][8.3%][Share of total]

Total© Computer Engineering & Consulting Ltd. All rights reserved.

Key points by industry

FY24/1

48,20653,124[100%][100%]

Amount%+1,683+7.9%+1,406+11.1%

+274

+6.0%

+113

+3.8%

+1,532+74.9%(93)(2.1)%+4,917+10.2%[Manufacturing]
Strong performance on systems
development projects for automakers andelectronics makers[Telecommunications/information
services]
Growth in ICT infrastructuredevelopment projects for major carriers[Finance]
Up slightly due to growth in large-scalemigration projects for securities firms[Distribution]
Despite the positive performance of ourlogistics products, only the Kansai region
saw sales growth; this growth wasmodest.
[Government agencies]
Strong performance of security
products
System operations projects grew.

12Balance Sheet changes since start of period(Million yen)

FY23/1

FY24/1

Amount%35,20839,005+3,796+10.8%Cash and deposits(included above)

23,302

26,714+3,412+14.6%

Non-current assets

11,124

12,385+1,260+11.3%

Total assets

46,33351,391+5,057+10.9%

8,311

9,006

+695

+8.4%

642

1,597

+954

+148.5%

Shareholder equity

37,30940,760+3,451+9.3%

Equity ratio

80.5%

79.3%

–

(1.2)pt

Current assets

Current liabilities
Non-current liabilities© Computer Engineering & Consulting Ltd. All rights reserved.

PointsAssets: Up
Growth in cash and deposits

Liabilities: Up
Growth in allowance for bonuses
and contract liabilities

Shareholder equity: Up
Growth in retained earnings

13

Shareholder returns◼ We will enhance shareholder returns in light of improved performance for this period.
◼ We plan to increase the year-end dividend by 5 yen to pay ordinary dividends of 55 yen/share including theinterim dividend.*1
Trends in dividends and payout ratio
(Yen)
46.1%

100

80

50%

40.7%

38.4%

40%

34.7%
29.6%

60

40

40

40

20

40

20

20

45

20

55
+5 yen

25

20

30%

20%

10%

20

20

20

FY20/1

FY21/1

FY22/1

20+5 *225

FY23/1

FY24/10

0%Interim中間© Computer Engineering & Consulting Ltd. All rights reserved.

Year-end
期末

配当性向
Payout ratio*1 To be submitted to the 56th Ordinary General Meeting of Shareholders*2 An additional special dividend of 5 yen was paid in H1 FY23/1 due to gains onsales of investment securities.

14

Contents

1.

Operating results for the fiscal
year ended January 31, 2024

2. VISION 2030 (long-term vision)
3.

Full-year forecasts for the fiscal
year ending January 31, 2025

4. Appendix© Computer Engineering & Consulting Ltd. All rights reserved.

15

Start of formulation of the long-term VISION 2030
◼ We consider FY2025/1 to be a turning point toward VISION 2030.
FY2025/1
Current medium-term
management plan

FY2026/1

FY2027/1

FY2028/1

Next medium-term management plan

Basic strategy for topline growth◉ Evaluation ofcurrent businesses◉ Formulation of
VISION 2030
◉ Formulation of thenext medium-term
management plan

• Priority investments of resources in growth
areas• Promoting M&A activities in growth areas• Business facility expansion• Broadening of business domains (vertical andhorizontal)• Expanding and enhancing the sales company
network

Reorganization of businesssegments• Business portfolio optimization• Business model transformation• Enhancements of proprietary services• Intensification of existing contract
businesses© Computer Engineering & Consulting Ltd. All rights reserved.

FY2029/1

FY2030/1

FY2031/1

Subsequent medium-term management plan

Creating businesses to serveas pillars for the next phaseof growth• Technology-driven new businessdevelopment• Cocreation with alliance partners

Growth investment• Human capital• Business development, R&D• Internal DX infrastructure development

Sustainability management• Thorough ESG initiatives• Business model design andmanagement structure transformation
based on social issues

VISION2030
Net sales

100.0billion yen
IncomeMaintaining
andimprovingprofitability

16

VISION 2030 cash allocation policies◼ We plan to implement continuous investments in growth and make stable enhancements to shareholder returns.

 Growth investment

Investment ininfrastructure andgrowthBusiness
revenues
Shareholder
returns M&A
 R&D, businessdevelopment
 Human capital Internal DX andequipment investment

We expect to invest
about 20.0 billion
yen by FY2030.

 Enhanced shareholder returns
 Payout ratio of 50% or more
 Purchase of treasury
stock

About 10.0 billion
yen expected by
FY2030 Normalization of cash on hand

Cash on hand

Cash on hand

 Securing cash on hand and investing actively,
with consideration for appropriate capitalefficiency*The above amounts are subject to change based on business results.

© Computer Engineering & Consulting Ltd. All rights reserved.

17

Contents

1.

Operating results for the fiscal
year ended January 31, 2024

2. VISION 2030 (long-term vision)
3.

Full-year forecasts for the fiscal
year ending January 31, 2025

4. Appendix© Computer Engineering & Consulting Ltd. All rights reserved.

18

Full-year forecasts for the fiscal year ending January 31,
2025◼ Growth investment toward VISION 2030 will start this period(Million yen)

FY24/1 results

FY25/1
forecasts

YoY
Amount%Net sales

53,12456,500+3,376+6.4%

Gross profit

14,096

15,500+1,404+10.0%

Gross profit margin

26.5%

27.4%

–

+0.9ptOperating income

6,361

6,280

(81)

(1.3)%

Operating profit margin

12.0%

11.1%

–

(0.9)pt

Ordinary income

6,409

6,300

(109)

(1.7)%

Ordinary profit margin

12.1%

11.2%

–

(0.9)pt

Net income attributableto owners of parent

4,541

4,300

(241)

(5.3)%

Margin on net income
attributable to owners ofparent

8.5%

7.6%

–

(0.9)pt© Computer Engineering & Consulting Ltd. All rights reserved.

POINT❶
Gross profit toincrease withbusiness growth

POINT➋
Lower income due toincremental growthinvestment

19

Investment targets◼ We are increasing net sales by 500 million yen and growth investment by 700 million yen, backed by positive
business conditions.
Initial target of current
medium-term
management plan

56.0 billion
yen

Operatingincome6.9 billion
yen

ROE

12.0% ormore

Payout ratio 40% or more

© Computer Engineering & Consulting Ltd. All rights reserved.

700+
millionyen

Further investment ingrowthNet sales

FY25/1
forecasts

56.5
billion yen

Efforts to strengthen business capabilities⚫ Establishing a dedicated section to create new businesses utilizing
advanced technologies⚫ Configuring the Sales Unit to share sales information and promote efforts toanticipate potential customer needs⚫ Doubling R&D investment in focus areas

Efforts to strengthen HR and technological capabilities

6.3 billion
yen
12.0% ormore
40% ormore⚫ Improving employee compensation and benefits through various measures,
including raises of 3% or more and enhanced benefits⚫ Tripling hiring-related expenses amid intensifying competition for humanresources⚫ Strengthening investment in HR training, including investments to strengthen
DX human resources and project managers

Efforts to strengthen management foundations⚫ Implementing proactive financial measures to achieve ROE of 12%⚫ We expect to pay annual dividends of 55 yen and to acquire about 3.0
billion yen in treasury stock during FY2025/1.
⚫ Moving on to M&A execution by narrowing list of prospective targets

20Full-year forecasts by business segment◼ Net sales and operating income forecasts(Million yen)

FY24/1 results

Digital Industry
Business
Focus businesses(included above)

Net sales

18,313Operatingincome[margin]

4,100

4,800

[22.4%][23.8%]Net sales

6,209

7,300

FY24/1 results

Net sales

Service Integration
Business
Focus businesses(included above)

FY25/1
forecasts

20,200FY25/1
forecasts

34,81036,300Operatingincome[margin]

6,606

6,110

[19.0%][16.8%]Net sales

8,123

8,800

YoY
Amount%+1,887+10.3%+700+17.1%+1,091+17.6%

Focus
businesses

Focus
businesses

8,800

Digital Industry
Core businesses
Service Integration
Core businesses

YoY
Amount%+1,490+4.3%(496)*(7.5)%

+677

+8.3%

7,300

12,90027,500(FY2025/1 sales targets by business segment)* Rebound from DC maintenance costs / large-scale and highly profitable projects© Computer Engineering & Consulting Ltd. All rights reserved.

21

Contents

1.

Operating results for the fiscal
year ended January 31, 2024

2. VISION 2030 (long-term vision)
3.

Full-year forecasts for the fiscal
year ending January 31, 2025

4. Appendix© Computer Engineering & Consulting Ltd. All rights reserved.

22

Basic policies of the Vision 2025 Medium-Term Management Plan

Vision 2025: To a Company That Creates the Future with ICT Technologies
1. Strengthening business capabilities
From two to six focus business areas

1. 事業力の強化

Shifting to service-oriented businessCompanywide business synergies

2. Strengthening HR and technical capabilities
Business
growthX
Staffing
assignments

Cultivating human resources

1. 事業力の強化

Employee increases and transformation
Diversity and workstyle reforms

3. Strengthening management foundations
Promoting ESG activities

Net sales

Target management
indicators© Computer Engineering & Consulting Ltd. All rights reserved.

56.5 billion yen

1. 事業力の強化
Promotinginternal DX

Ordinary income

6.3 billion yen

Improving the financial base, etc.

Ordinary profit margin

ROE, payout ratio

11% or more

ROE: 12.0% or more
Payout ratio: 40% or
more23Status of efforts to promote sustainability management(vs. FY22/1)◼ Strengthening management foundations to achieve sustained growth in corporate value
 Increasing year-end dividend by 5 yen for annual dividends of 55 yen (up from 50 yen) and realizing a payout
ratio of 40%
 Increasing wages by 3%, including increases in base pay, and average employee annual income to 6.3 million
yen (nonconsolidated) While new graduate hiring is proceeding as planned, competition for midcareer hires has been more intensethan expected.

Dividend per share

+

15yen

Average salary

Employees+2.9%+25 persons

Women as a percentage
of all employees

Percentage taking
annual paid vacation

12.6Pt

2.8Pt

+

+

55
40

20

45
20

30

20

25

25

FY22/1

FY23/1

FY24/1© Computer Engineering & Consulting Ltd. All rights reserved.

614

614

FY22/１

FY23/１632

FY24/１2184

FY22/12195

FY23/12209

FY24/121.1%

FY22/1

23.0
%

23.9
%

FY23/1

FY24/1

69.4%
FY22/１76.7%

FY23/１82.0%

FY24/１24

Other indicators◼ Trends in numbers of employees (persons)
2,248

2,231

2,212

2,184

2,265

2,239

2,207

2,195

2,288

2,260

◼ Trends in ROE and operating profit margin
Operating profit margin
営業利益率

ROE
ROE

2,230 2,209

14.2%

12.0%
8.7%
1,518

1Q

1,513

2Q

1,501

3Q

1,483

4Q

1,553

1Q

FY22/1

1,536

2Q

1,512

3Q

1,506

4Q

1,558

1Q

FY23/1
連結
Consolidated

1,539

2Q

1,519 1,505

3Q

11.6%
9.1%

FY22/1

FY23/14Q

FY24/1
単体
Nonconsolidated*2◼ Trends in number of partners

1,735
1,645
1,615 1,627

9.3%

A special dividend of 5 yen was paid in H1 FY23/1 due to gains on sales of investment securities.

1,794

1,711

1,764

1,667

1,546
1,476

1Q

18.3

1,501

2Q

3Q

FY22/14Q

1Q

2Q

FY24/1◼ Average overtime (hours)*1 (persons)

1,769

*2

3Q

FY23/1

4Q

1Q

2Q

3Q

18.6

19.2

4Q

FY24/1
FY22/1

FY23/1

FY24/1*1 CEC nonconsolidated, not including subcontracts© Computer Engineering & Consulting Ltd. All rights reserved.

25

Company overview
Name

Computer Engineering & Consulting Ltd.

Employees

2,209 (as of January 31, 2024)

EstablishedFebruary 24, 1968

Consolidated
Subsidiaries

7 companies

Date oflisting

April 2022 (Prime Market, Tokyo Stock Exchange)
July 2001 (First Section, Tokyo Stock Exchange)

Head Office

JR Ebisu Bldg., 1-5-5 Ebisu Minami, Shibuya-ku, Tokyo, 150-0022, Japan

Capital6,586 million yen

Representative

Takashi Himeno, President

Business Segments■ Digital Industry Business
Providing ICT products and services to improve business efficiency and quality
Licenses and Certifications
and to support the production of attractive products, chiefly for customers in■ Registered in the System Audit Corporate Ledger of the Ministry of
manufacturing industries
Economy, Trade and Industry■ Service Integration Business■ Registered in the Information Security Audit Corporate Ledger of the
Supporting the entire ICT life cycle as needed to achieve corporate andMinistry of Economy, Trade and Industry
organizational business reforms and improvements; comprehensive provision of■ Privacy Mark Certification No. 11820032 (13)
ICT products and services, including cloud computing and security solutions■ JQA Certifications<Two businesses contributing to a sustainable society>• Quality Management System
ISO 9001:2015 (Certification No. JQA-1481)
Digital Industry Business
Service Integration Business• Information Security Management System
ISO/IEC 27001 (Certification No. JQA-IM0007)• Information Security Controls for Cloud Services
An ICT partner specializing in manufacturing
A total ICT integrator
ISO/IEC 27017 (Certification No. JQA-IC0040)
Promoting ESG management and contributing to customer business growth by addressing social issues• Information Technology Service Management System
ISO/IEC 20000 (Certification No. JQA-IT0005)
ICT needs for promoting smart factories
Overall ICT infrastructure expertise•AI•Cloud• Environmental Management System
In-house data centers, cloud linkage
Customer IoT adoption and PoC expansion
infrastructure•Big
ISO 14001:2015 (Certification No. JQA-EM7701)
•IoT
Data
Systems tailored to specific industries andAI, IoT, and sensing technologies
businesses■ Telecommunications Construction Business License no. 28700 from
•Robotics •Security
Accumulating expertise on factoryProtection against increasingly advanced
the Ministry of Land, Infrastructure, Transport and Tourism (General-4)
automation controls, robotics, and equipment
security threats(Licensed November 21, 2022)
Net Sales

53,124 million yen (FY2024/1)© Computer Engineering & Consulting Ltd. All rights reserved.

26

Segment Information: Digital Industry Business
An ICT partner specializing in manufacturing
Business overview

Strengths⚫ Addresses the production and logistics fields for manufacturers.
Product planning, product and systems development, maintenance, solutions
services⚫ In-the-field factory information infrastructure⚫ AI image recognition and detection⚫ Expertise in the OT field⚫ A lineup of our own products⚫ Consulting, systems development, maintenance/operations in IoT and connected
fields centered on mobility, and solutions services⚫ Businesses related to embedded software development, centered on onboard
devices⚫ Auto-testing, CI/CD development, and other businesses related to quality solutions⚫ Engineers with expertise in areas such as cloudcomputing and vehicle controls⚫ Development knowledge and expertise related to mobility
services⚫ One-step service capabilities for handling planning,development, and maintenance

Chubu Services⚫ Provides the auto industry with general ICT services for the technical information
segment (Bill of materials, PDM, and CAD) and corporate information segments(sales, finance, and accounting; HR and production logistics).

⚫ Connections with and related business expertise for major
automakers⚫ Relationships characterized by mutual trust built throughdirect transactions since CEC's founding⚫ Knowledge of legacy systems based on a wealth ofbusiness experience (parts lists, production management,
procurement, HR, accounting)Nishinihon Services⚫ Provides SI services based on business SI and EOS solutions in the Kansai and
Hokuriku areas.
⚫ Provides product planning, development, maintenance, operation, and productservices centered on the IoT field in the logistics and manufacturing domains.
⚫ Provides systems development, verification, maintenance, operation, and adoption
services centered on the factory automation/industrial machinery andmedicine/healthcare fields.

⚫ Customization for individual customers in logistics
solutions⚫ A track record with airports, manufacturing plants, andother special projects

Smart Factory

Connected Services© Computer Engineering & Consulting Ltd. All rights reserved.

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Segment Information: Service Integration Business

Platform Architects

Service Integration

A total ICT integrator
Business overview

Strengths

Enterprise⚫ Consulting, systems development, and maintenance/operations using Microsoft cloudservices like Dynamics 365, Microsoft 365, and Azure⚫ Solutions, systems development, and maintenance/operations for government
agencies and local governments⚫ Track record and expertise in the SFA domain⚫ Track record in cloud development for government
Reorganizedagencies and local governments

AX Services⚫ Consulting, systems development, and maintenance/operations related to ICT
modernization based on migration services⚫ One-step services capable of handling multiple solutions⚫ A wealth of expertise, automation tools, and specializedengineers

Business Systems⚫ Systems development and maintenance/operations for the financial sector, includingbanks, insurance, credit cards, securities, and leasing⚫ Engineers with expertise in the financial business⚫ Capacity to propose comprehensive solutions fromdevelopment through operations

Security⚫ Monitoring and operating security services and devices⚫ Product development and sales, solutions services, systems development, andmaintenance/operations related to office security based on recognition technologies

Platforms⚫ Operations related to the management of entire life cycles, from planning and study
through design, development, migration, and operation of ICT systems and cloudservices

Data Centers

Group companies⚫ Businesses related to data center services and cloud services⚫ Businesses related to system operation design, adoption support, and operation
management services⚫ Near-shore development, integration, and maintenance/operations⚫ HR dispatch services⚫ Products: capacity to handle multiple makers, nationwide
sales channels⚫ Services: capacity to handle multiple vendors, wideranging monitoring compatibility⚫ One-step service capabilities ranging from ICT
infrastructure design through development, migration,and operation⚫ Capacity to handle multiple vendors and multiple
Reorganized
cloud platforms⚫ Capacity to provide 24-hour service 365 days/year
through on-site engineers⚫ Uses 100% green power⚫ Ties to major manufacturers and business expertise* The Service Integration Business was reorganized in February 2024.
© Computer Engineering & Consulting Ltd. All rights reserved.

28

Focus Businesses (FY2024/1 Results)

Service Integration

Digital Industry

34.8 billion yen

18.3 billion yen

Focus businesses

Focus businesses

8.1 billion yen

6.2 billion yen

Production/
Logistics
Solutions

Offers, in addition to products and services
for manufacturers, LogiPull logistics
solutions and support for digitalization andDX strategy from production workplaces
through logistics.

Mobility
Services

Deploys services utilizing onboard andtransportation Big Data, mainly forconnected solutions in the automotive field.

Microsoftrelated
Services

Promotes businesses in cooperation with
Microsoft Japan, chiefly through DX support
in management analysis and marketing
based on Dynamics 365 and Azure.

Migration
Services

Supports DX for legacy ICT upgrades, cloud
migration, and system/app environments.

Security
Services

Offers a line of products to safeguard
networked ICT elements from security
threats, as well as security consulting,design, development, and operation
services.

DX Cloud
Platforms

Promotes cloud computing by integrating
our products and applications with cloud
platforms.

Focus
businesses

Digital Industry
Core businesses

Service Integration
Core businesses© Computer Engineering & Consulting Ltd. All rights reserved.

Service Integration

Focus
businesses

Focus businesses: Business fields leveraging our unique strengths

Digital Industry

Companywide sales: 53.1 billion yen

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Details of Orders Received◼ We are receiving growing numbers of orders for ICT infrastructure development, in addition to orders formobility services and migration services.

Digital Industry

Smart Factory While factory DX projects are expanding, order lead times are lengthening.

 Orders for Big Data analysis in the auto industry remain strong.
Connected Services

Chubu Services

Nishinihon Services

Service Integration
Service Integration

 Orders received are trending downward due to restrained investment by machine tool makers.

Platform Architects

Group companies© Computer Engineering & Consulting Ltd. All rights reserved.

 Cloud service development and BEV onboard testing in the mobility domain are showing signs ofgrowth.
 Orders are growing for backbone systems development (design, finance, production logistics) frommajor customers.
 Systems development orders are growing for medical manufacturing.
 Orders are growing for the LogiPull logistics solution and related systems development.
 Positive performance thanks to large orders for Microsoft 365 in addition to Dynamics 365
 Growth in cloud hosting orders in the migration sector
 Strong performance in ICT infrastructure development orders for major telecommunications carriers Growing sales of security products for government agencies and local governments

 Growth in near-shore development sales to and system operations orders from major customers

30

Disclaimers✓ This document is not intended for purposes of soliciting investment.
✓ The forecasts of future financial results included in this document have been prepared based on Japanese
economic and information-service industry trends and other information available as of the date of preparation.
Note that actual results may vary due to various factors such as uncertainties inherent to forecasts and changing
domestic and international business conditions.
✓ Unauthorized reproduction or reuse of the contents of this document is prohibited.

[Contact us]

Computer Engineering & Consulting Ltd.
Business Planning Div., Business Promotion Unit, Corporate Management Group (attn.: IR)
TEL: 03-5789-2442
Accounting & Finance Div., Corporate Administration Unit, Accounting & Finance Div. (attn.: IR)
TEL: 046-252-4111
E-mail: IR@cec-ltd.co.jp© Computer Engineering & Consulting Ltd. All rights reserved.

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